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APAC IT spending to reach $767B in 2014

Posted: 01 Nov 2013 ?? ?Print Version ?Bookmark and Share

Keywords:Internet of Things? IT? cloud? enterprise?

According to the latest forecast from Gartner Inc., IT spending in the Asia Pacific region will approach $767 billion in 2014, a 5.5 per cent increase from 2013, up from $727 billion this year, and reach $933 billion in 2017. The driving factor behind this forecast are the imminent opportunities presented by the digital world.

"The Digital Industrial Economy will be built on the foundations of the Nexus of Forces (which includes a confluence and integration of cloud, social collaboration, mobile and information) and the Internet of Everything by combining the physical world and the virtual," said Peter Sondergaard, SVP at Gartner.

"Digitalisation exposes every part of your business and its operations to these forces. It is how you reach customers and constituents; how you run your physical plant; and how you generate revenue or deliver services. Enterprises doing this today are setting themselves apart and will collectively lead the new Digital Industrial Economy," noted Sondergaard.

In China, spending is forecast to grow 6.7 per cent in 2013 and accelerate to 8.7 per cent growth in 2014. According to Gartner, China's very powerful growing middle class is having a huge impact on the rest of the economy and IT, moving consumer and enterprise markets. Automation of health, banking, government, communications and manufacturing are major IT drivers. These vertical industries will offer the greatest opportunities for technology vendors in the next five years.

In 2009, there were 2.5 billion connected devices with unique IP addresses to the Internet, most of these were devices people carry such as cell phones and PCs. In 2020, there will be up to 30 billion devices connected with unique IP addresses, most of which will be products.

This creates a new economy. In fact, Gartner predicts that the total economic value add for the Internet of Things will be $1.9 trillion dollars in 2020, benefiting a wide range of industries such as healthcare, retail and transportation.

"Computing power will be cheap and covert. We won't know it is there; it will be in our jewellery and in our clothing," Sondergaard said. "We will throw more computers into our laundry in a week than we've used in our lifetimes so far."

"Digital changes the IT market in a big way through the Internet of Things," continued Sondergaard. "In the technology and telecom sectors, revenue associated with the Internet of Things will exceed $309 billion per year by 2020."

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